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RMD dates you need to know

RMD dates you need to know

| October 15, 2020

Those with a traditional retirement savings plan are required by the IRS to take RMDs and pay taxes on them every year once you reach the age of 70½. Since the penalty for missing your RMD deadline can be severe, we thought a quick explanation of the important dates to know would be helpful to help you avoid any penalties: 

The IRS generally requires all retirees to begin withdrawing RMDs the year you reach the age of 72. The deadlines are as follows:

  • December 31 - Typically, the first RMD is taken by December 31 in the year you turn 72. Then, all subsequent RMDs must also be withdrawn annually by December 31.
  • April 1 - You can choose to delay your first RMD until April 1 of the year after you turn 70. That will require you to take two RMDs that year (April 1 and December 31). The deadline for all subsequent RMDs after that year will be December 31. You can only delay your first RMD.

Keep in mind that if you delay your first distribution to April 1, there may be additional tax implications so if you have any questions regarding your RMD deadline based on your birthdate, we’d be happy to review it with you. 

All the best,